–Slightly More Tightening Seen For Businesses, Unchanged For Housing
BRUSSELS (MMI) – Eurozone banks will continue to tighten their
credit standards in the third quarter for loans to businesses and
households, the European Central Bank reported Thursday in its latest
Bank Lending Survey.
The ECB said banks on balance will slightly increase the degree of
credit standard tightening on loans to companies in the third quarter of
2011, while continuing the tightening at the same level for housing
loans and easing it marginally for consumer credit.
According to the survey of 124 banks, the net balance saying they
expected to tighten lending conditions rose slightly to 6%. For housing
loans, that balance remained unchanged at 9%, while for consumer loans
it declined to 6%.
Over the second quarter of this year, euro area banks as a whole
slightly decreased the degree of credit tightening compared with the
first three months of the year.
The net balance of banks reporting tighter loan conditions for
businesses was halved from 4% to 2%, while for housing loans it fell
from 13% to 9%. Terms for consumer lending tightening by a net 7% in the
second quarter of the year, the same rate as the first, the ECB said.
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